Filecoin continues to struggle in the market, dropping by 42 per cent this month. In today’s trading session, the prices are down by 3 per cent, a trend that is likely to continue throughout the session.
The drop comes despite the recent partnership between Filecoin and Lockheed martin. The partnership plans to create a blockchain network that is accessible from space. The idea behind the partnership is to be able to provide an InterPlanetory File System (IPFS) node.
The IPFS platform will be an open-source data storage and sharing protocol which is aimed at speeding data downloads by letting network participants hold and share information. The project’s goals will see a reduction of latency when downloading data from remote locations. The IPFS node will also be able to be operated in outer space areas such as the moon, according to Marta Belcher, the head of policy and general counsel at Protocol Labs.
Normally, such an announcement should have led to a resurgence in the prices of Filecoin. However, hours after the announcement, the markets seem to not have reacted. The price of Filecoin has continued to drop throughout the session and is likely to drop further. However, the announcement indicates that the platform’s use cases are expanding. In the future, it is likely that we will see increased usage of Filecoin, which will result in price recovery.
Today’s trading session is showing strong bearish signs after dropping by 3 per cent. The prices also look increasingly likely to continue with the downward trend. However, the prices have been trading sideways in the past few days. The bears and bulls have also been alternating for the past few sessions. Therefore, it is likely that the current bearish move is a continuation of the sideways market.
This is why I expect the prices to continue dropping for today’s trading session. However, there is a high likelihood of the trend changing and being bullish tomorrow. This will be a continuation of the alternating trading sessions.
However, if the prices drop below the $8.0 price level, then my analysis will be invalidated. It will indicate a bearish trend resumption. There is a likelihood of the prices hitting the $6.18 support level if the prices close below that level today.
This post was last modified on May 25, 2022, 14:03 BST 14:03